Research Relationship Among Position Embedded In Global Value Chain,Innovation And Value-added Capability

The dilemma of low-end locked in global value chain(GVC)has always been a very crucial issue during the economic upgrading and transformation of China.In order to get rid of the predicament,it seems to be an inevitable choice to climb to the middle and high-end position in GVC and then to take the dominant position in GVC.However,the mainstream view excessively emphasizes on climbing to a position as high as possible in GVC,but ignores the important problem that whether value-added capability of our industries can increase with the rise of position embedded in GVC.Aiming at this situation,position embedded in GVC and value-added capability of China's manufacturing industries with different technical levels between 2007 and 2011 are measured in this paper,which is based on the World Input-Output Tables.Furthermore,the relationship amongposition embedded in GVC,innovation and value-added capability is investigated.The main results are as follows:Firstly,on the whole,the position embedded in GVC and corresponding value-added capacity for Chinese manufacturing industry are in a relation of inverted U type.That is,in the process of climbing from low-end to the middle and high-end position in GVC,the value-added capability of enterprises increases as the position embedded raises.However,beyond some height,the worse their value-added capacity will become.This conclusion is of great significance to the upgrading and transformation of Chinese enterprises and the climbing GVC strategy.Secondly,for high-tech manufacturing industry,it has a lower position in GVC and most middle and high-tech manufacturing industry show weaker value-added capacity than low-tech manufacturing industry.The technical level of the industry is not a positive correlation with its position embedded in GVC and value-added capability.Finally,previous studies mainly have been focused on the impact of innovation on the promotion of positiorn embedded in GVC.In this paper,the study found that innovation has a positive effect on value-added capability and up-regulated effect on the relationship between position embedded in GVC and value-added capacity.The results of this study possess great theoretical significance to the choices of Chinese enterprises' position embedded in GVC and innovation strategy during the course of climbing GVC.At the same time,they also have an important policy meaning to the upgrading and transformation of China's economy by climbing industry chain.